BMW to cut 20 percent of management as AI expands and 2 Series Active Tourer will not be replaced

BMW Group will expand use of artificial intelligence across development, purchasing, production and aftersales and has tied that move to a planned 20 percent reduction in management roles, the company said on 30 September.

The cuts are aimed at making those divisions run more efficiently and form part of a broader restructuring that BMW Group says also affects organisational levels below management.

"game-changer for more agile and efficient development, more efficient structures and faster decision-making," said Walter Mertl, CFO.

The management reduction is targeted for completion by mid-2027. BMW Group said the plan folds AI expansion, management reductions and two new model launches into a single profitability push.

The announced management cuts are separate from a voluntary redundancy programme already underway in Germany. Reuters reports that programme could affect roughly 8,000 positions. BMW reached an agreement with its Works Council in July covering job losses tied to the AI transition.

What this means for models

BMW signalled the restructuring will produce a thinner model range. As an example, the company said the current 2 Series Active Tourer will not receive a successor even though the present generation remains in production.

Resources are being redirected toward new launches, including a compact entry-level electric vehicle for Europe that BMW plans to introduce in 2028 as part of its Neue Klasse rollout. BMW says reducing the number of variants will free engineering capacity for AI-driven processes.

BMW has not detailed which other models or specific trims will be cut beyond citing the Active Tourer. The company has previously discussed a framework of nameplates carrying lower brand value, which is likely to influence which models are retained.